Family accused of $70 million phone scam

Injunction sought to halt operations and freeze assets

Jan. 22, 2013

Written by

Matt Volz

Associated Press

$40 MILLION RETURNED

Hundreds of complaints have been filed against the Sannsí businesses with the FTC, the Better Business Bureau and with phone companies, the FTC complaint says. Of the $70 million billed since 2008, the Sannsí companies have returned more than $40 million after customer challenges, according to the FTC complaint. But data collected by the federal agency show many more donít know that theyíre being charged.

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HELENA, MONT. — A Montana family and its accountant are accused of tacking $70 million in bogus charges onto customer phone bills nationwide, then funneling some of that money through a religious organization to buy land and pay for the husbandís legal bills.

Steven Sann, his wife Terry, son Nathan and accountant Robert Braach run a maze of nine companies engaged in ďcramming,Ē or adding unauthorized charges to a customerís phone bill, according to a civil complaint filed this month by the Federal Trade Commission.

When customers complained or phone companies grew suspicious about one of the Sannsí companies charging phone bills, they would switch over to another company, the complaint says.

The FTC is asking a judge to issue a preliminary injunction that would force the Sanns to stop operating the companies and freeze their assets. In a court filing Friday, the family attorney, Sarah Rhoades, asked U.S. District Judge Dana Christensen for a stay in FTC civil action, saying there is a criminal investigation already under way.